ECSC financial report 1993

€

t

O

uJ

Cataloguing data can be found at the end of this publication

Luxembourg: Office for Official Publications of the European Communities, 1994

ISBN 92-826-8255-2

©

ECSC-EC-EAEC, Brussels • Luxembourg, 1994

Reproduction is authorized, except for commercial purposes, provided the source is acknowledged.

FINANCIAL REPORT 1993

DG XVIII

Credit and Investments

Wagner Centre

European Commission

***

*

*

*

*

SJU8WJ_S8/\Uf pue J_!p8J:J jl?J8U89-JOJ_:J8JIQ

I:::J:::JOIJ ·3

UOISSIWWO:J 8LfJ_ jO Jeqwef/1}

Preface

Dunng the year rev1ewed in this report, the debate on the future of the ECSC

Treaty was enriched by two important contnbutJons from the Commission,

one concernmg ECSC borrowmg and lending operations, the other

concern-mg the budget outlook up to the year 2002. On 31 December 1993,

discus-sion of these documents was still in progress and 1t was not until early 1994

that conclusions could be drawn. Both the European Parliament and the

ECSC ConsultatiVe Committee gave their opinion on the CommiSSIOn's

pro-posals, and an agreement was reached dunng the Council meetmg on

m-dustry on 22 April 1994. Th1s agreement provides for a gradual reduction in

borrowing and lending operations in order to free the ECSC's reserves as

far as possible before the expiry of the Treaty, while allowmg the

Commis-sion to complete the act1ons to which 1t 1s committed.

The text of the Commission DeCISIOn of 22 June 1994 implementing the

conclusiOns of the abovementioned Council meeting was published m the

Off1c1al Journal of the European Communities

C 175 of 28 June 1994.

Within the scope of its fmancJal activities, the ECSC lent a total of ECU 918

million in 1993, in companson w1th total/ending in 1992 of ECU 1486

mil-liOn. This reduct1on is mainly due to the effects of the recess10n which

af-fected nearly all economic sectors, but was particularly severe in the coal

and steel industnes. It was also partly attributable to uncertamty

surround-ing the future of the ECSC's financial activities.

Faced with th1s cns1s, the Commiss1on continued to make a s1gndJcant

fi-nancial contnbut10n to programmes for the creat1on of new

economically-sound activities and the transformation of enterprises in order to promote

the re-employment of workers made redundant by the restructurmg of

ECSC industries. Industrial conversion loans disbursed for such purposes m

1993 totalled ECU Cf38 million, against ECU 426 milliOn m 1992.

The year 1993 also witnessed the start of the 12th programme of loans for

workers' housmg. A total of ECU 13 mil/ton was devoted to this. Of note

among the other lending activities were loans for steel consumption wtthm

the framework of major mfrastructure projects of European interest. Such

loans, which had been particularly significant m 1992, totalled ECU 210

mil-lion in 1993.

The ECSC's fmanCial actiVIties constitute an instrument that is both closely

targeted and wide-rangmg m 1ts aid to the coal and steel mdustnes. The

Commtssion feels duty-bound to use it to the best of its abilities m attainmg

these new targets.

E. CIOFFI

Contents

Activities

Economic background and developments 1n ECSC industries

1

0

ECSC lend1ng and guarantee operations

15

ECSC borrowing operat1ons

27

Other ECSC activities

32

Out-turn of the ECSC operating budget

39

ECSC financial statements

Balance sheets at 31 December 1993

46

Prof1t-and-loss accounts for the year ending 31 December 1993

48

Allocation of the surplus for the year ending 31 December 1993

50

Notes relating to the above financ1al statements

51

Report of the European Court of Auditors on the financial

statements of the European Coal and Steel Community at

31 December 1993

73

Annexes

Analysis of loans outstanding

76

Statement of consolidated debt at 31 December 1993

77

Main characteristics of loans disbursed in 1993

77

Main characteristics of borrowings outstanding (Ecu value at

31 December 1993)

82

ECSC

Commission

The European Coal and Steel Community was established under the Treaty

s1gned

1n

Pans on 18 April 1951 by Belg1um, the Federal Republ1c of

Ger-many, France, Italy, Luxembourg and the Netherlands. The Treaty came mto

force in 1952 for a penod of 50 years. On 1 January 1973, Denmark, Ireland

and the Un1ted Kmgdom became members of the ECSC. Greece acceded

to the Treaty on 1 January 1981. On 1 January 1986, Spam and Portugal

joined the Community. The 12 member countries are heremafter referred

to as the 'Member States'.

The Commission of the European Communities exercises the powers and

responsibilities devolvmg upon the former High Authonty

1n

accordance

w1th the rules la1d down by the ECSC Treaty.

On 31 December 1993, the Members of the Commiss1on were:

Mr Jacques Delors

President

Henning Christophersen

Vice-President

Manuel Marfn

Vice-President

Martin Bangemann

Member

Sir Leon Brittan

Member

Mr Abel Matutes

Member

Peter Schm1dhuber

Member

Mrs Chnst1ane Scrivener

Member

Mr Bruce Millan

Member

Karel Van M1ert

Member

Hans van den Broek

Member

Joao de Deus Pmheiro

Member

Padra1g Flynn

Member

Antonio Rubert1

Member

Rene Steichen

Member

Yannis Paleokrassas

Member

Ran1ero Vanni d'Archirafi

Member

Directorate-General

for Credit and

Investments

Address

Ecu

The Directorate-General Cred1t and Investments conducts the ECSC's main

f1nanc1al operations under the authority of Mr Enrico Cioff1, Director-General,

Mr Dieter R. Engel, D1rector of Investments and Loans, and Mr Paul

Gold-schmidt, Director of Finance.

European Comm1ss1on- Directorate-General for Credit and Investments

Centre Wagner

Rue Alcide de Gaspen

L-2920 Luxembourg

Telephone: (352) 430 11

Fax: (352) 436 322

Telex: EURFIN 3366LU

By v1rtue of the Commission Decision of 19 December 1980,

1

the ecu

re-placed the EUA for operat1ons under the ECSC Treaty from 1 January 1981.

The ecu is a composite monetary unit made up of a basket of Community

currencies. As from 1 November 1993, the date on wh1ch the Treaty on

European Union came mto force, the composition of the ecu basket in terms

of nat1onal currenc1es 1s as follows:

BFR

DKR

DM

DR

3.301

0.1976

0.6242

1.440

ESC

1.393

FF

1 .332

HFL

0.2198

IRL

0.008552

LFR

LIT

PTA

UKL

0.130

151.8

6.885

0.08784

The equivalent of the ecu

1n

any currency is equal to the sum of the

equiva-lents in that currency of the amounts of each of the currencies making up

the ecu.

Each day the Commission calculates the rate of the ecu aga1nst 24

curren-cies on the bas1s of the exchange rates recorded at 2.30 p.m. by each

cen-tral bank. The rates are available from 3.30 p.m. and are sent to the national

monetary authorities and the European Monetary Cooperation Fund (EMCF)

secretariat, which uses them

1n

1ts accounts of operations w1th1n the

Euro-pean Monetary System. These rates may be obtained each day by

auto-matiC telex answering serVICe (Telex Brussels 23789, type

ecce

to engage

the automatic answering system) and are published in the C senes of the

Offtcta! Journal of the European Communities ('Information' section).

The ecu conversion rates used for the vanous Community and

non-Commu-nity currencies are listed on p. 51.

Great Belt A/S

Ftxed !tnk between Halsskov and

Knudshoved tn Denmark:

Economic background and

developments in ECSC

industries

General economic situation

In 1993, the recession pursued 1ts course and unemployment rates

con-tinued to rise in most Member States. At the same t1me, there was

consid-erable nse

1n

budget deficits.

Econom1c growth, which had been

+

1%

1n

1992, fell to - 0.4%

1n

real

terms

1n

1993: the f1rst negat1ve growth rate since 1975. Th1s poor

perform-ance was due to the general slow-down in world econom1c activity. In the

Community, the recession started relatively late owing to German

unifica-tion, wh1ch boosted demand

1n

Germany and hence

1n

Europe as a whole.

Other factors adversely affected econom1c activity and bus1ness and

con-sumer confidence,

1n

particular diff1cult1es with the rat1f1cat1on of the Treaty

on European Un1on, turmoil on the fore1gn exchange markets and

disagree-ments at the GATT negotiations. These negative Influences comb1ned with

the economic slow-down to cause a continuing declme

1n

investment and a

drop

1n

exports.

This led to a 2% fall in employment, as aga1nst a drop of 0.2% in 1992, which

pushed the Community unemployment rate up to over 10% of the act1ve

population.

As a result, nat1onal governments were forced to let their budget deficits

r1se considerably to reach 6.4% of GDP, the h1ghest f1gure s1nce the

be-ginnning of the decade.

I nflat1on was dampened by the worsening economic situation and the

main-tenance of t1ght monetary pol1cies. An analysis of the econom1c situation at

the end of 1993 showed l1ttle prospect of change for the Community in

1994, though there were small signs of future Improvement with an

In-crease

1n

econom1c growth. This sl1ght change of trend was accompanied

by small reductions

1n

inflation and unemployment, though these d1d not

seem likely to cause a s1gn1f1cant improvement to the s1tuat1on in the

Com-munity as a whole.

New factory for producmg pest1c1de:

BASF, Schwarzhe1de

Coal industry

The Commun1ty's coal industry continued 1ts process of structural

adjust-ment, rational1zat1on and modern1zat1on that has charactenzed act1v1t1es

1n

recent years.

W1th the world market offenng an abundant and vaned supply of coal at

stable pnces, the coal-pr·oducmg countries were forced to contmue to direct

their efforts towards a gradual reduction

1n

government subsidies to the coal

industry.

The year 1993 was the threshold between the system of government

sub-Sidles covenng the period from 1986 to 1993 (Decision 2064/86/ECSC) and

the new system (Dec1s1on 3632/93/ECSC of 28 December 1993) covenng

the period up to the exp1ry of the ECSC Treaty in the year 2002.

The new system requ1res Member States planning to grant subs1d1es to the

coal industry to draw up structural adjustment, rationalization and

modern-Ization plans that provide for further progress towards economic viability in

the light of mternat1onal market prices for coal, with the a1m of bnnging

about a gradual reduct1on

1n

subsidies. If this aim cannot be ach1eved, the

enterprises must direct their efforts towards a gradual phasing-out of the1r

act1v1t1es.

As a result of the structural adjustment pol1cies adopted in recent years by

all Member States (closure of uncompetitive mines, staff reductions, etc.),

productivity continued to nse, even though differences in international

com-pansons persisted. The yield of underground mmes 1n the Community

in-creased from 703 kg per man-hour in 1992 -to 758 kg in 1993, an

improve-ment of some 8%, wh1ch can be expected to continue in 1994.

Commun1ty coal production totalled 160.3 million tonnes

1n

1993, as agamst

184.6 m1ll1on 1n 1992, a reduction of 13.2%. The number of underground

workers fell from 14 7 400 in 1992 to 129 600

1n

1993.

Imports from non-Community countries in 1993 totalled some 116 million

tonnes, a decrease of 20.2 million tonnes

1n

comparison with 1992.

The iron and steel industry

In 1993, production of raw steel in the Commun1ty totalled 132.4 m1ll1on

tonnes, an output similar to that of the previous year (132.1 million tonnes).

The downward trend prevailing in previous years has, therefore, flattened

out. The max1mum production capac1ty also stabilized at about 192 mill1on

tonnes, as in 1992. The 1993 utilization rate was therefore practically

iden-tical to the 1992 figure of 68.8%.

The 1993 product1on of hot-rolled products totalled some 112 mill1on tonnes

(provisional f1gure) as agamst 115 m1ll1on tonnes in 1992, a decrease of

2.6%. However, this reduction was not high enough to meet Commun1ty

gu1delmes.

The maximum production capac1ty of rolling plant, wh1ch totalled 171

mil-lion tonnes in 1992, rose to nearly 172 mill1on tonnes (provisional figure) in

1993, wh1ch represented a utilization rate of 65% in 1993 as agamst 67% in

the prev1ous year.

Lastly, investment in the steel industry

1n

1993 was in the region of ECU

3 100 m1llion (prov1s1onal f1gure) as against ECU 3 958 million

1n

1992, a drop

of 21.7%, continuing the downward trend recorded in previous years.

Construction of a flue-gas cleaning plant:

ECSC loans paid in 1993

(million ECU)

ECSC loans outstanding at

31 December 1993 {

1

)

(million ECU)

(1)

Excluding ECU 104,3 million outside

Community.

ECSC lending and guarantee

operations

The general trend in 1993

In 1993, the total amount of loans disbursed by the ECSC (ECU 918.3

mil-lion) was 38.21% lower than the 1992 figure (ECU 1 486.2 milmil-lion).

Th1s decrease is largely due to the econom1c recess1on that affected all the

Member States. The sharp drop

1n

productive investment was reflected in a

reduct1on in the number of loans for mdustnal conversion (Article 56).

In the ECSC f1eld, the structural adjustment of the steel and coal industnes

gathered pace. With the notable exception of Italy for steel consumption,

th1s resulted

1n

a particularly low volume of industnal loans (Article 56).

The Commission approved the principle of f1nancial support for the

restruc-turing of the Community's steel industry. This will be put into practice in the

form of ECSC loans subject to agreements authorized by the Commission

for the closure by enterprises of surplus capac1ty in the sub-sectors of

hot-rolled wide strips, quarto plate and heavy sections.

On 20 October 1993, the Commission put forward guidelines for the

ECSC's future borrow1ng and lendmg operations.

Loans disbursed in 1993- breakdown

by

Member State

rm;ii!On ECUJ

I II Ill

Coal Steel T1ernal· lnous:·ral lf\icrlers' Total

M~mber StatP

1nductry Industry powPr Othfr Tn:al c01vPrSIIlll h<x.~ '19 I ~tat1ons (Article

IArt1cle iArt·ce

IArt1cle 541211 I iArt1cle iArtc e + I

54i'l) 5411)) 56· 5412)) + II

S4(211

-Beig1um - - - - 00 19 - ₁₉

Denmark - - - - 00 - - 0 0

Gerr1any - - - - _{00 2 7 9 74 225 3}

Greece - - - _{89 6 89 6} - 0 2 _{89 8}

S~a1n - - - - _{00 04 07 II}

Fidi'Ct - - - - 00 390 9 09 391 8

Ireland - - - - 00 - - 00

ltalv - 76 - 93 6 101 2 22 I 33 126 6

Lu\embuurg - - - - ₀₀ - 01 0 I

l~etherlands - - - - ₀₀ - - ₀₀

Portugal - - - - 00 - 03 03

Un1ted K1ngdom - - - 26 5 26

s

i4 9 - 71 4

Co·nmun1ty 0 0 76 00 209 7 217 3 688 I 12 9 9.8 3

~lon-Commun1:y - - -

l

b'

-<

t[

0

"

"

o_

<

c

~

s

g

~

g~ ~ ~ co

tri_

~

...

---··75,8

16,0

0,1 17,7 3,0 2,9

~

1989~

1990 1991 1992 1993

:

:.

209,7

831,8

3m

-·

n

=CJ)

a·

n

:::::l

-0

mll.l ():I CCII

Financing of industrial investment

(Article 54 of the ECSC Treaty)

ECSC loans for financing industrial investment (in the steel and coal

indus-tnes, power stations and other sectors) totalled ECU 217.3 million in 1993,

a reduction of 79.2% in comparison with the previous year (ECU 1 04 7.0

million).

Loans for industrial investment

(mt!!ton ECU)

Total loans Total loans Balance

Member State d1sbursed at New loans 1n disbursed at outstanding at

31 December 1993 31 December 31 December

19921 _{1993 1993}

Belgrum 396.9 - 396 9 156.5

Denmark 404 3 - 404 3 332 5

Germany 3 753.2 - 3 753 2 442 8

Greece 12 9 89 6 102 5 89 6

Spa1n 523 2 - 523 2 516 7

France 2 781 7 - 2 781 7 794 6

Ireland 291 - 29 1 11 2

Italy 2 244 8 101 2 2 346 0 907 5

Luxembourg 250 7 - 250 7 8 1

Netherlands 504 7 - 504 7 263 2

Portugal 110.8

i

- 110 8 110 8

Un1ted i<-_1ngdom 3 034 1 26 5 3 060 6 308 6

Commun1ty 14 046.4 217 3 14 263 7 3 922.1

Non-Community 406 6 - 406 6 104 3

Total 14 453.0 217.3 14 670.3 4 026.4

Financing of investment in the steel industry

(first paragraph of Article 54 of the ECSC Treaty)

ECSC loans to the steel Industry fell by 96.22%, from ECU 201.4 million

1n

1992 to ECU 7.6 million in 1993. Five loans were disbursed dunng the year

to compan1es

1n

Italy.

Loans to steel companies

1

(mil/ton ECU!

-Member State

1989

1990

1991

1992

1993

-~-- - - -

-Belgrum - -

67

-

-Denmark

1

6

- -

-Germany

1

3

120

143

-Greece

-!

- - -

-Sparn -

₁₁₅

₈₈

-

-France - - - -

-Ireland - - - -

-Italy

39

22

47

58

8

Luxembourg

70

- - -

-Netherlands

41

-

41

-

-Portugal -

67

- -

-Ur11ted Krngdorn - - - -

-I

Communrty

152

213

363

201

8

Non-Comn1rmrty - - - -

----

~-Total 152 213 363 201 8

Aft0r arlju<;tmccnt tor the new riltes for convertrng natrona! c urrencres rnto ecus I see p 51)

Proportion of steel industry investment financed by ECSC loans

1

(9o)

---~---Member St<1te

1989

1990

1991

1992

1993

Belgrum - -

13

-

-Denmark

18

47

- -

-Germany

01

03

7

10

-Greece - - - -

-Sparn -

27

26

-

-France - - - -

-Ireland - - - -

-Italy

6

2

4

6

2

Luxembourg - - - -

-Netheri::Jnds

42

-

23

-

-Portugal

53

83

- -

-Unrted Krngdom - - - -

-Total 4 5 7 5

Financing of investment in the coal industry

(first paragraph of Article 54 of the ECSC Treaty)

In 1993 no loans were disbursed to the coal Industry.

Proportion of coal industry investment financed by ECSC loans

(%)

Shares of Men•ber States in total ECSC coal loans{%)

UK

e

75

100

-E

20

F

t

-5

..

1991

1992

0

1993

Loans to coal undertakings {million ECU)

OF

DUK

.E

f'... C\1

j_d~

1989 1990 1991

_I_

Financing of thermal-power stations

(second paragraph of Article 54 of the ECSC

Treaty)

Since 1989, no loans have been disbursed for financing thermal-power

sta-tions.

Financing of investment in other sectors

(second paragraph of Article 54 of the ECSC

Treaty)

ECSC lend1ng to other sectors fell by 74.9% from ECU 831.8 million in 1992

to ECU 209.7 million in 1993.

These loans were disbursed for investment programmes facilitating the sale

of Commun1ty steel. All were granted at the rate of borrowmg.

Loans to other sectors

lmtffton ECU!

1989

!

1990

1991

1992

1993

I

Iron Iron Iron Iron I Iron

Member I

State ore Other ore Other ore Other

oce

I

Othec

ore Other

m1nes m1nes m1nes mmes mmes

Belg1um - - -

₂₄

-

62

-

-Denmark - - -

₃₀₀

-

-Germany -

2

- - -

10

-

8

-

-Greece - - -

90

Spam - - -

160

-

-France - - -

101

-

₁₀

-

₁₂₀

-

-Ireland - - -

-Italy -

28

-

54

-

17

-

41

-

94

Luxembourg - - -

-Netherlands - - - I -

-Un1ted

K1ngdom - - -

₅

-

141

I -

26

I

Community -

30

-

₁₅₅

-

₆₆

I -

₈₃₂

-

210

Non-Commun1ty - - -

-Total

-

30

-

155-1

-

66

-

832

-

210

- - - -

Financing of workers' housing

(second paragraph of Article 54 of the ECSC

Treaty)

The Commission continued the 11th ECSC workers' housing programme,

which, with an initial budget of ECU 48 m1ll1on, was to run from 1989 to

1992.

Loans for th1s purpose are drawn from both the ECSC's own funds and from

borrowed funds. Loans from own funds are granted at an Interest rate of

1% on a long-term basis, generally in the currency of the country concerned.

Combining these loans from own funds with other loans ra1sed on the

do-mestic market at current market interest rates allows a leverage effect on

national financing of housing for ECSC workers.

In 1993, the Commiss1on disbursed a total of ECU 12.0 million under the

11th programme. A total of ECU 0.9 million was disbursed under the 1Oth

programme. In addition to building projects, the funds were also used to

renovate or purchase existing hous1ng.

On 28 July 1993, the Comm1ssion dec1ded to reallocate the balance of

un-used appropriations totalling ECU 4 257 559 to the extended 11th

pro-gramme.

On 1 September 1993, the Commission proposed launch1ng a 12th

pro-gramme of finance for workers' housing. The propro-gramme, which was to

cover the period from 1993 to 1997, was granted Council assent on 17

De-cember 1993 and a budget of ECU 36 m1ll1on for 1993 and 1994. The

appro-priation for 1993 was ECU 19 million, disbursement of which will actually

start

1n

1994.

Loans for workers' housing

(mtllton ECU)

Total loans Total loans Balance

Member State drsbursed at New loans rn drsbursed at outstandrng at

31 December 1993 31 December 31 December

19921 _{1993 1993}

Belgrum 50 7 - _{50.7 9 1}

Denmark 1 9 - 1 9 03

Germany 244 2 74 251 6 76 5

Greece 07 02 09 07

Sparn 7 1 07 78 67

France 65 7 0.9 66 6 24 3

Ireland 1 2 - 1.2 07

Italy 123 5 33 126 8 70 5

Luxembourg 89 0 1 90 1 8

Netherlands 22 9 - _{22 9 43}

Portugal 0.6 03 09 08

Unrted Krngdom 38 3 - _{38 3} 17 9

Total 565.7 12.9 578.6 213.6

Loans for workers' housing, disbursement history

(mt!!JOn ECU!

Member State

1989

1990

1991

1992

1993

Belg1um -

1 8

08

01

-Denmark - - - -

-Germany

3 1

20

3.4

58

74

Greece

01

-

02

-

₀₂

Spa1n

24

-

1 6

2 2

07

France

06

1 7

2 6

1 3

09

Ireland

0 1

- - -

-Italy

7 2

3 2

08

1 2

33

Luxembourg - -

03

0 1

0 1

Netherlands

02

- -

1 1

-Portugal

03

- -

₀₅

₀₃

Un1ted Kmgdom

20

1 4

80

I

07

-Total 16.0 10.1 17.7 13.0 12.9

Financing of industrial conversion programmes

(Article 56 of the ECSC Treaty)

In 1993, greater efforts were made to coord1nate lend1ng for industrial

con-version

1n

ECSC areas with other forms of fmanc1al aid for structural

pur-poses aimed at regenerating areas of declining industrial employment.

For this purpose, on 19 February 1992, the Commission adopted new

mea-sures for coordinating ECSC industnal conversion loans with the Structural

Funds. These arrangements were published in OJ C 59 and came mto force

on 6 March 1992.

The measures are based on the principles of subs1dianty and partnership

and entail plannmg activities and concentrating ECSC financial resources on

the areas most severely affected and on the sectors corresponding to the

Community's pnor1ties for act1on.

In practice, this gives the Community Support Framework Monitoring

Com-mittees extra responsibility for monitonng and coordinating lending

activi-ties for industrial conversion.

A

notional allocation was set aside for each

re-gion from ECSC budget appropriations to finance mterest subsidies on

these loans. The f1rst not1onal allocation covered the two-year period

1992-93. The appropriations were also concentrated on investment sectors that

corresponded to the objectives of the Commun1ty Support Framework

(CSF) by establishing a list of ineligible sectors.

Structural adjustment in the steel industry has already led to a considerable

reduction in jobs, from 368 900 in 1992 to 335 300 in 1993.

In 1993, the Commission contmued 1ts endeavours to promote job-creation

in other sectors by means of loans at reduced Interest rates. For the sake of

efficiency, it acted through financial institutions, to wh1ch it granted global

loans, which were on-lent to firms, particularly SM Es.

The contribution of Industrial conversion loans to these programmes was

ECU 688.1 million in 1993.

During 1993, the Comm1ss1on disbursed 94 industrial conversion loans. Of

these, 91 were global loans totalling ECU 324.7 million to promote

invest-ment in small and medium-sized enterprises and three were d1rect loans

totalling ECU 363.4 million. These loans should help create some 23 000

JObs.

All or part of the loans granted under Art1cle 56 of the ECSC Treaty are

eli-gible for interest subs1d1es (generally 3%) for a maximum of five years. This

financial benefit IS granted in exchange for an undertaking on the part of the

beneficiary to set a proportion of the jobs created aside for workers made

redundant by ECSC Industries.

Loans for industrial conversion, breakdown by Member State

!mtl/10n ECU!

Total loans Total loans Balance

Member State drsbursed at New loans rn drsbursed at outstandrng at

31 December 1993 31 December 31 December

19921

1993 1993

Belgrurn 196 6 11 9 208 5 86 3

Denmark 98 - _{98 08}

Germany 2 102 0 217 9 2 319 9 1 152 5

Greece - - -

-Sparn 90 6 04 91 0 73 4

France 582 8 390 9 973 7 592 8

Ireland 50 - _{50 0 0}

Italy 535 1 22 1 557 2 386 5

Luxembourg 42 2 - 42 2 12 9

Netherlands 44 0 - 44.0 26

Portugal - - -

-Unrted Krngdom 1 992 0 44 9 2 036 9 1 096 9

Total 5 600.1 688.1 6 288.2 3 404.7

Summary of lending and guarantee operations

1954-93

From the begmning of its financial activities up to 31 December 1993, the

ECSC disbursed loans totalling ECU 21 549.1 mill1on. Of th1s f1gure, ECU

21 127.6 million was drawn from borrowed funds and ECU 421.6 million

from own funds (spec1al reserve and former pension fund).

Including guarantees 1ssued during th1s period, the ECSC had granted a

total of ECU 21 627.5 mill1on

1n

fmanc1al aid by the end of the 1993 financial

year, as agamst a total of ECU 20 160.5 by 31 December 1992.

The increase 1n total fmanc1al aid between 1992 and 1993

IS

partly

attribut-able to new loans (ECU 918.3 million) and partly to exchange-rate

adjust-ments (ECU 548.7 million).

Loans disbursed and guarantees granted up to 31 December

1993-breakdown by Member State

Initial amounts

1

(mtllton ECU!

Loans

Total

Member State From Guaran- loans and %

borrowed From own Total tees

guaran-funds funds tees

Belgrum 632 6 23 5 656.1 - 656 1 30

Denmark 4141 1 9 416 0 - 416 0 1 9

Gernvmy 6 106 1 229 6 6 335 7 69 4 6 405 1 29.6

Greece 102 6 09 103 5 - 103 5 05

Sparn 614 3 78 622 1 - 622 1 29

France 3 755 6 66 3 3 821.9 8.8 3 830 7 17 7

Ireland 34 1 1 2 35 3 - _{35 3 02}

Italy 3 007 4 22 6 3 030 0 01 3 030 1 14 0

Luxembourg 295 0 78 302 8 - 302.8 1 4

Netherlands 550 9 20 8 571 7 - 571 7 26

Portugal 110 8 09 111 7 - _{111 7 05}

Unrted Krngdom 5 097 5 38 3 5 135 8 - 5 135.8 23 7

Non-Communrty 406 6 - 406 6 - 406 6 1 9

Total 21 127.6 421.6 21 549.2 78.3 21 627.5 100.0

1 _{After adJustment tor the nevv rates tor convert ng natrona I cur rene res rnto ecus (see p 511}

'"I

sooj

450

400~

'50~

300~

Industrial conversion loans

by Member State

ECSC borrowing operations

In

1993, the bond markets again expenenced a record issue volume of USD

485 billion (all types of issue and currencies), against USD 343 b1ll1on

1n

1992, an increase of over 40%.

This growth was largely due to the requirements of sovere1gn borrowers,

some of whom were forced to rebuild their foreign currency reserves as a

result of the turmoil on the fore1gn-exchange markets. In addition, there

were mcreased demands on the resources of the European Community and

the European Investment Bank, and act1v1ty therefore contmued at a h1gh

level throughout the year.

Among the most commonly borrowed currencies, the US dollar was again

in first place w1th

36% of issues followed, as

1n

1992, by the German mark

and the yen

(12% each). Pound sterling and the French franc came next,

with far higher than average increases in issue volume. Despite a number

of large issues, particularly those launched by the European Community on

behalf of Italy, the ecu market suffered considerably from the uncertainty

surroundmg the ratification of the Maastricht Treaty and accounted for only

1.5% of total issues.

Owing to the crisis affecting the steel industry 1n

1993, applications for

ECSC finance were noticeably fewer than in previous years. Total

borrow-ing in all currencies was ECU

907 597 000, as aga1nst a total of ECU

1 474 390 000 at the end of 1992, a reduction of 38%.

In addition, there was a drop in the average amount of each transaction,

wh1ch fell from ECU

38 mill1on

1n

1992 to ECU 29 million

1n

1993. This trend

was reflected in borrowing policy in the form of an increased reliance on

pri-vate placements and bank loans, which together accounted for

84% of

loans contracted and 30% of the amount ra1sed.

The French franc and the German mark, with

43% and 32% respectively,

accounted for the lion's share of borrowings. Sterling came in third place

with

8% of the total. It should be noted that, with the exception of one

transaction in US dollars, all loans were issued in Community currencies.

Use of swaps was also considerably reduced in

1993

1n

view of the relative

~ .) I

<0010000+XS0047108351+00+UOOOOO>

FRF 10,000

European Coal and:Steel Community

Bearer Bond

FRF 890,000,000 5.75 per cent. Bonds ·due 200f.

· Thh Bond p;. nne of a serie"l designated a~ &pecit1ed in Tht! title (the "Bond-'311

) """ued-nuL111de

of France b) !he l:.u.ropean Coal and &eel Communi!~ tthe "Issuer' "I '"th the benefit of !he F1scal Agency Agrc-emcn( referred w on th.e reverse hercof~·and the holder of this Bond 1s botl.nd by the provhmno, of ~uch Fi~cal AgencJ Agreement The nbnd.:; ~ue subject 1.0 the terms and c.onditlons

([he ·•condition~") endor">ed heroon

The hs.uer for v.tlue received herehv prorm.,cs to pay to beaJer .of thi.;; Bond on N(P .. ember 19,

' 20tH or on ..::ut;.b- ear her d.tte a.'. the prin~Ipal ~urn hereioiltter mt:ntioncd ma: b~tcome rernwable m

accordan1.:e '"'itl1 the Condttton.), the pnnctpal ;urn of

f'RF Ht,OOO (ten thousand l<'rencb francs)

tog(!ther wlfh intere."lt on r,uch principal _ .. urn at the: rate of~ .,, per cent. per annum from November 19, 199) payab,le annually m arrear" un )\knemhCr t9 m eac-h year, rhe hr<:t payment of interesi to be made on ,Nm-crnb~r 19, 1994, aH t~UbJCC[ to and in ac~..ordancc wnh ~he-CunditJOn\_

Thi; Bond ;hall not b<>'ahd for any purpo.o un!il authenl~eated by or on behalf of Kredietbant.. S .. \ Lu\emb<>utgeo.se, :1< Fi;cal >\gent

lS'Ncd om::.H.ie France on ~nvcmbcr l~j, 1991

IN\\ ITNl'SS WHFRl'O!·, this Bond ha' been duly ~ecu!ed on behalf ~I the Issuer hy i!S duly

autbott,ed officer.

-Cl.Rflt(( "'-1!-Of Al'[JIPdfCATIO'\

ur on beJlJtt l1l

I""'"'"''"'~''''''"'"" ft-..;a\

l'uropean Coal and Site! Comm_unit~

Commi~slon of Ute European Communitie'

.\"\' l'NI lLIJolArt:~ I'[){SO:-o \\IIO HtJt !1S'I fiiS!JHIIc,Ail0" \\II I BL~t UltCT 10 liM! !Afl_O'.S U'\OlR11H L"J1lDSTA.tl'ii'\CO~lt 1>,'\L\\I'i.ll'.Cll:DJ'it'; IIH·ll\llf.\r!ON'>PRO\'Il>Lfll'\

ECSC borrowing in 1993

by currency

(equivalent value in million ECU)

ECSC borrowings outstanding

at 31 December 1993 by currency

(equivalent value in million ECU)

Total ECSC borrowings at 31 December 1993

Total

Balance borrow1ngs

Redemption outstanding at Borrow1ng currency rece1ved at Repayments

31 December prem1um 31 December

19921 1993"

German mark 8 867 1 6 148 0 ~ 2 7191

US dollar 4 613.3 3 941 1 ~ 672 2

Sw1ss franc 2 013 8 1 795 4 ~ 218 4

French franc 1 419 5 747 9 ~ 671 6

Dutch gu1lder 581 3 496 1 ~ 85 2

Ecu 809 6 227 0 45 0 627 6

Luxembourg franc 599 6 513 7 ~ 85 9

Belg1an franc 563 7 523 6 ~ 40.1

Pound sterl1ng 927.5 367 5 ~ 560 0

Japanese yen 423 7 423 7 ~ ~

ltal1an l1ra 1 490 5 190.2 ~ 1 300.3

Canad1an dollar 106 6 50 6 ~ 56 0

EMU 94 5 94 5 ~ ~

Un1t of account (u a) 49 4 49 4 ~ ~

Span1sh peseta 229 8 11 6 ~ 218 2

Portuguese escudo 76 1 00 ~ 76 1

Total 22 866.0 15 580.3 45.0 7 330.7

1 After adjustment for the new rates for converting nat10r1al currerK1es rnto ecus (see p 51 I

Loans issued

by

the ECSC in 1993

-Type Amount 1n m1ll1or1s Issue

Interest Term

of Currency

1n borrow1ng

I

(years) pr1ce rate

(%)

ISSUe 1n ecus

currency

Publ1c DM 215 000 111 072 6 625 93-98-98 101 150

DM 135 000 69.743 6 125 93-98-98 101 070

FF

1 500 000 228 052 7 93-03-03 97 785

FF

890 000 135 311 5 75 93-01-01 98 460

USD 100 000 89 632 6 375 93-08-08 99 606

Pr1vate DM 57 300 29 602 L1bor 6M+0.04 93-99-03 100 000

DM 1.000 0 517 6 75 93-99-08 100 000

DM 20 000 10 332 L1bor 6M+0 04 93-99-03 100 000

DM 18 200 9 402 L1bor flat

!

93-99-03 100 000

DM 1 750 0 904 7 08 93-99-08 100 000

DM 1 185 0 612 6 64 93-99-08 100 000

DM 13 900 7.181 6 09 93-98-01 100 000

DM 74 305 38 387 5 49 93-98-98 100.000

DM 1 355 0 700 6 39 93-99-08 100.000

DM 14 550 7 517 L1bor flat 93-98-01 100 000

PTA 60 000 0 378 9 75 93-96-00 100 000

BF

339 480 8 427 7.42 93-98-98 100 000

BF

141 800 3 520 6 51 93-98-98 100 000

FF

99 400 15 112 8 55 93-98-98 100 000

FF

18 800 2 858 8 23 93-98-98 100 000

FF

10 400 1 581 6 65 93-98-98 100 000

FF

43 675 6 640 5 65 93-98-98 100 000

LIT

i

52 600 000 27 540 L1bor 6M+0. 187 93-98-03 100 000

I I

LIT 15 600 000 8 168 L1bor 6M+0 250 93-99-03 100 000

I

LIT 19 700 000 10 314 L1bor 6M+O 245 93-99-03 100 000

LIT 12 840 000 6 723 L1bor 6M+0.15 93-98-01 100 000

LIT 11 600 000 6 073 L1bor 6M+O 15 93-98-01 100 000

UI\.L 20 000 26 486 9 875 93-03-03 109 484

UKL 9 088 12.036 7 565 93-98-01 100 000

UKL 9 000 11 919 7 93-98-98 100 000

UI\.L 15 750 20 858 L1bor 3M+0 25 93-98-98 100 000

~~-lf

..

ll_•~·~~IDI~~~tJI

M"-

. . . .

,., ..

.

I

European Coal and Steel Community

24000- 23800- 23600- 23400- 23200- 23000- 22800- 22600- 22400- 22200- 22000- 21800- 21600- 21400- 21200- 21000- 20800- 20600- 20400- 20200- 20000- 19800- 19600- 19400- 19200- 19000- 18800- 18600- 18400- 18200- 18000- 17800- 17600- 17400- 17200- 17000- 16800- 16600- 16400- 16200- 16000- 15800- 15600- 15400- 15200- 15000- 14800- 14600- 14400- 14200- 14000- 13800- 13600- 13400- 13200- 13000- 12800- 12600- 12400- 12200- 12000- 11800- 11600- 11400- 11200- 11000- 10800- 10600- 10400- 10200- 10000- 9800- 9600- 9400- 9200- 9000- 8800- 8600- 8400- 8200- 8000- 7800- 7600- 7400- 7200- 7000- 6800- 6600- 6400- 6200- 6000- 5800- 5600- 5400- 5200- 5000- 4800- 4600- 4400- 4200- 4000- 3800- 3600- 3400- 3200- 3000- 2800- 2600- 2400- 2200- 2000- 1800- 1600- 1400- 1200- 1000- 800- 600- 400- 2000

-Loan allocations and total borrowings to

31 December 1993

(million ECU)

LOANS -Mrscellaneous

D

~ee:odna:::;,'~~ and mdustnal -Workers'hou;rng

Olndustnalloans

BORROW r - 1

INGS _ _ L-...J _ _ _ _ _ _ _ _ _ _ _ j

- I

•

77 7

Other ECSC activities

In addition to 1ts act1v1t1es based on borrowmg and lending operations, the

ECSC f1nances a number of schemes from its operating budget. These

in-volve the redeployment of workers, interest subsidies for Industrial

conver-Sion loans and programmes of coal, steel and soc1al research.

Redeployment aid

(Article 56(1 )(c) and (2)(b) of the ECSC Treaty)

Traditional aid

Redeployment a1d provides essent1al soc1al support for the Community's

in-dustrial pol1cy

1n

the ECSC sectors. When permanent closures, cut-backs or

changes of activity lead to job losses, the Community endeavours to

miti-gate the social repercussions for the workers through redeployment

measures. It thus helps to finance aid to limit income losses for the workers

affected or, by means of training courses and resettlement allowances, to

give them the opportun1ty to rema1n in employment and make a product1ve

contribution to the economy.

Acknowledging that the rationalization of the Community coal industry

en-tails the concentration of m1ning act1v1ty on coal deposits that can be worked

in a h1ghly mechanized fashion and that the resulting productivity gains

would lead to major job losses without a concomitant reduction

1n

the level

of activity on the part of enterprises (cond1t1on for the application of Art1cle

56(2)(b)), the Commission decided

1n

1988, to accept that the consequences

of the introduction mto the coal industry of modern techniques and

produc-tion processes, giving rise to unprecedented job losses (condiproduc-tions provided

for in Art1cle 56(1 )(c)), should also be taken into consideration.

The average max1mum amount granted per worker is ECU 3 000, any

pay-ment being contingent upon the Member State concerned makmg at least

an equivalent contnbut1on.

In add1t1on to this 'trad1t1onal' system of aid granted under Art1cle 56(1 )(c)

and (2)(b) of the Treaty, the ECSC has adapted and strengthened other

forms of support:

(1) In the steel sector,

where there have been major cut-back programmes

smce the end of the 1970s, the Commun1ty has been applymg spec1al

measures since 1981 that prov1de workers affected by restructuring

with supplementary a1d for early retirement and redeployment (soc1al

measures- steel).

In 1993, a new three-year supplementary programme (1993-95) was

adopted. Under th1s programme, workers taking early retirement receive

a spec1al allowance of up to ECU 5 000 to supplement the a1d granted

under the bilateral agreement. Workers who change occupation or

undergo vocat1onal traming receive, in addition to the trad1t1onal a1d, an

allowance of up to ECU 4 000. Unemployed workers receive a special

allowance of ECU 2 000.

(11) In the coal sector, the Colllmission also decided 1n 1990 to 1mplement a

new programme- Rechar- designed to strengthen Community

sup-port for the economic regeneration of the areas most severely affected

by the decline of the coal industry. Under this programme, the ERDF, the

ESF, the EIB and the ECSC act together to promote the Improvement of

the environment, the growth of new 1ndustnes and the development of

human resources. Th1s aid is supplementary to grants and loans from

other sources under the community support framework or 1n the form

of traditional ECSC a1d for the redeployment of workers. In early 1994,

the Commiss1on decided to extend th1s programme for a per1od of four

years.

Under Rechar, ECSC redeployment a1d helps to finance measures aimed

at:

(i)

training mmers for new jObs;

(i1) prov1ding the least qualified among them with a bas1c pre-vocational

tra~ning;

(111) enabling those who wish to do so to become self-employed by

pro-viding advice and assistance during the f1rst few months;

Photograph Arbed

Appl1cat1ons for a1d in 1993 related to the social programmes Implemented

dunng 1992 and 1993. The total amount of 'trad1t1onal' a1d granted was over

ECU 182 million, from appropnat1ons of ECU 185 million. For Rechar, el1g1ble

applications (totalling ECU 65 million) exceeded the funds available (ECU 50

million) as a result of unexpected appl1cat1ons (particularly from the Un1ted

Kingdom, owing to the detenoration of the employment situation in the coal

industry). Under the soc1al measures for the steel industry, for which el1g1ble

applications totalled some ECU 80 million, an initial additional tranche of

ECU 60 million was committed for 1993. The surplus was carried forward

to the 1994 programme.

The tables in the annexes show the breakdown by Member State of

recipi-ents and amounts granted in 1993 in the form of 'traditional' a1d, the Rechar

programme and the 'supplementary programme' for the steel industry

1993-95. They also show the cumulative position for each programme at 31

December in each of the past two years.

Steel industry research

(Article 55 of the ECSC Treaty)

Under the steel research programme 1993, the CommiSSIOn selected 57

research projects out of 160 proposals for financ1al a1d under Article 55 of

the ECSC Treaty. It also f1nanced four projects from the 1992 reserve l1st

and five from the 1993 reserve list. The main a1ms of these projects were:

reducing production costs, Improving the quality and performance of

prod-ucts, promotmg the use of and developing new applications for steel and

bnng1ng production conditions into line with environmental requirements.

Also under Article 55 of the ECSC Treaty, the Commission cont1nued 1n

1993 the special programme of pilot and demonstration projects by

financ-Ing 15 projects out of 22 proposals put forward by the steel industry, plus

the second stage of two projects from the 1992 reserve l1st. These a1med

to develop new processes and test mnovative appl1cat1ons.

Financial aid for research proJects breaks down

(In

%)

by f1eld as follows:

(I)

ore preparation

ll.06

(il) steelmakmg

20.02

(Iii) rolling m1lls

l5.69

(iv) measurement and analys1s

ll.92

(v)

properties and performance

4l.3l

Fmanc1al a1d for pilot and demonstration projects breaks down (1n

%)

by f1eld

as follows:

(1)

production of cast iron and steel

65.64

(ii) continuous casting

l 0.83

(i11) rolling and product

process~ng

6.4l

(iv) on-lme testmg

l7.l2

Furthermore, an additional budget of ECU

260 000

was set aside for the

continuation of the 'steel-environment' programme approved 1n

l99l

for

the purpose of assessing the env1ronmental fnendlmess of production

tech-niques.

Lastly, a sum of ECU

2 354 307

w1ll be spent on the dissemination of the

results of the ECSC 'steel' technical research programme.

Social research

(Article 55 of the ECSC Treaty)

Under the various memoranda settmg up research programmes on health,

hyg1ene and safety at work

1n

ECSC enterpnses (' ECSC social research'),

the Commission granted ECU 14 999 780 for research, the dissemination

of the results and assoc1ated costs:

F1fth med1cal research programme:

13 projects:

ECU 2 101 900 (14.1 %)

Technical control of pollution and other harmful effects at the workplace and

in the environment of steel works

14 projects:

ECU 3 789 900 (25.3%)

Sixth research programme on 1ndustnal hygiene in mines:

9 projects:

ECU 1 040 880 (6.9%)

Sixth research programme on ergonom1cs:

20 projects:

F1rst jomt research programme on safety:

24 projects:

Associated costs:

ECU 3 139 000 (20.9%)

ECU 4 233 100 (28.2%)

ECU 695 000 (4.6%)

Coal industry research

(Article 55 of the ECSC Treaty)

In the coal research sector, 118 proJects were granted financial support

un-der Art1cle 55 of the ECSC Treaty for a total of ECU 51 243 022, plus ECU

55 892 for the dissemination of research results and assoc1ated costs.

The main a1ms of these projects were to reduce coal production costs, raise

underground and p1t-head productivity, 1mprove safety and working

condi-tions, preserve existing markets and develop new outlets and, above all,

improve the use of coal w1th a v1ew to enhancing environmental protection.

Of a total of ECU 51 243 022 of aid granted, ECU 25 435 022 (49.6% of the

total) was earmarked for research projects with a specific environmental

1m pact.

Th1s f1nancial a1d breaks down (in %) by f1eld of research as follows:

Development systems

Mme gases, vent1lat1on and cl1mate

Coal-winnmg techniques and processes

Outbye operations underground

Modern p1t management

Minmg technology

Coal preparation and transport

Cokmg

Coal combustion

Upgrading and convers1on of coal

Utilizing and upgrading

Total

10.3

3.8

5.6

3.4

17.5

40.6

7.6

4.3

16.7

30.8

59.4

Out-turn of the ECSC

operating budget

Resources

The High Authority (the Commission) is empowered to ra1se the funds

needed to carry out 1ts mandate by sett1ng levies on the production of coal

and steel.

The ECSC lev1es are used to finance expenditure under the operating

bud-get and are, 1n h1stoncal terms, the f1rst truly European tax.

The levies are set annually for the various coal and steel products on the

bas1s of the1r average value. In 1993 the ECSC levy was set at 0.25% and

ra1sed ECU 121.3 million.

The b1ggest resource other than the levy 1s the net surplus of the year's

financial operations, particularly interest earned on cash holdlllgs, reserves

and other provisions featuring on the ECSC balance sheet. In 1993, the net

surplus totalled ECU 277 million.

Other resources are the cancellation of commitments unlikely to be

imple-mented and unused resources carried over from the prev1ous year. In 1993,

income from these sources totalled ECU 94.0 million and ECU 53.1 mill1on

respectively.

In 1993, the resources for the ECSC operating budget totalled ECU 596

mill1on.

Requirements

The resources of the operating budget are Intended to cover the various

types of expenditure provided for in the ECSC Treaty.

1. Social measures

Under Article 56(2)(b) and (1 )(c) of the ECSC Treaty, ECU 292.4 million was

committed 1n 1993 for a1d for the redeployment of ECSC workers (traditional

redeployment and social measures for the coal and steel industries).

As explallled in detail 1n the paragraph on redeployment aid in the last

chap-ter, these social measures provide essential support for the industnal policy

pursued by the Community in the ECSC sectors. When permanent closures,

cut-backs or changes of activity lead to job losses, the Community

endeav-ours to mitigate the social repercussions for the workers through

redeploy-ment measures. It thus helps to finance aid to provide income support for

the workers affected or by means of trallling courses and resettlement

allowances, to g1ve them the opportunity to remain in employment and

make a productive contribution to the economy.

Soc1al aid 1s granted under arrangements def1ned 1n bilateral agreements

which take account of the rec1pients' s1tuat1on (early retirement,

unemploy-ment transfer, retraining and vocational training).

ECSC social measures can supplement a1d and loans from other sources

under the colllmunity support frameworks.

2. Aid for research

Under Art1cle 55 of the ECSC Treaty, ECU 124.6 mill1on was committed in

1993

to a1d for technical, social and medical research 1n the fields of coal and

steel.

The ma1n a1ms of the aid for steel research (ECU 58 m1ll1on) were reducing

production costs, Improving the qual1ty and performance of the products,

promoting the use of and developing new applications for steel and bnng-

Photograph Arbed

ing production conditions 1nto line w1th environmental requirements.

In the area of coal research (ECU 51.8 mill1on). the malll a1ms were reducing

production costs, ra1s1ng underground and pit-head productivity, increasing

safety and working conditions, preserving new markets and, above all,

Im-proving the use of coal w1th a v1ew to enhancing environmental protection.

3. Interest subsidies on ECSC loans

Lastly, a sign1f1cant amount of a1d was granted under the ECSC budget (ECU

114.3 m1llion for 1993)

1n

the form of mterest subsidies on mdustnal

conver-sion loans (Article 56(2)(a)) to promote investment in economically viable

sectors to boost job creation and economic regeneration 1n reg1ons affected

by the decline of ECSC mdustnes. The procedures for granting such loans

and interest subsidies were last changed by the CommiSSIOn 1n 1990

1

_and

supplemented

1n

1992

~

by the adoption of arrangements for coordmating

them with the structural funds.

I OJ

c

188, 28 7 1990

Out-turn of the ECSC operating budget for 1993

Requrrements Forecc1st 1 _{Out-turn Resources}

Operations to be financed from current

resources Resources

(not reimbursable) for the financial year

1 Admr nrstr atrve 1 Current resources

expendrture 5 5 1 1 Yreld from levy at

0 25%

2 Arc for redeployment 1 2 Net balance

(Artrcle 561 185 182 381

1 3 Frnes and

3 Ard for research surcharges for

(Artrcle 551 124 8 124 584 late payment4

3 I Steel2 ₅₈

58 14 Miscellaneous

3 2 Coal" 51 8 51 797

3 3 Socral~ 15 I 14 787 2 Cancellatron of

I

I

commrtments

4 lllterest unlrkely to be

subsrdres 127 114 251 rmplemented

41 Investment

IArtrcle 54) - - 3 Unused resources

42 Conversron c carrred over from 1992

(Artrcle 56) 127 114 251

4 Extraordrnary recerpts

5 Socral measures rn Sacral measures rn

connectror1 wrth the connectron wrth the

restructurrng ot the restructurrng of the

steel rndustry: 60 60 steel rndustry

6 Sacral measures rn 5 Utrlrzc1tron of the

connectron wrth the contrngency reserve"·

restructurrng of the

16

coalrndustry3 _{50 50 Extraordrnary}

resources6

7 Damages and rnterest t e t e

payable

- 60 195

Surplus

Total 551.8 596.411 Total

Operations financed by Origin of non-borrowed loans from non- funds

borrowed funds Specral reserve and former ECSC Pensron

Subsrdrzed housrng 7 _{19 t}

_e

_Fund

1

See the Commrssron's out-turn forecast of 10 11 1993 IOJ C 307, 13 11 1993)

- Ard for proJects wrth a specrtrc rmpact on the envrronment·

Forecast lrnes 3 1 7 Out-turn lrnes 3 1 7 336

3 2 16 3 2 25 435

3 3 3 3 3 5 198

Rechar programme

Forecast lrnes 4 2 50

6 50

Out-turn lrnes 4 2 13 519

6 50

4

The amount due to the ECSC at 31 12 1993 was ECU 1 615 162.

5 _{The amount avarlable at 31 12 1993 was ECU 32 mrllron}

6 _{Source Guarantee Fund}

(m1//wn ECU!

Forecast 1 _Out-turn

117 121 254

252 277

t e

-t.e 0 021

78 7 94 040

53 1 53 096

te t e

te t e

51 51

551.8 596.411

19 t e

I

lmplementatron delayed Councrl assent was grven on 17 12 1993 for the frrst two tranches of the

12th programme ECU 19 mrllron forecast for 1993 and ECU 17 mrllron for 1994

ECSC financial statements

The ECSC's balance sheet prof1t-and-loss account and statement of the

allocation of profit for the year ending 31 December 1993 were submitted

to the Comm1ss1on for approval under wntten procedure No E/94/894 of

21 June 1994 and are shown

1n

th1s financ1al report as approved by the

Comm1ss1on.

Manufacture of c1rcwt breakers m a clean-room

(Saarland, Germany)

Balance sheets at 31 December 1993

(Amounts

1n

ecus)

Before allocation of surplus

Assets

- - - -- - - -- - - , - - - -- - -

-Balances wrth cer1tri'll ban~s

(Note 3\

Loans and advances to credrt rnstrtutrons (Note 41

- repayable on demar1d

- wrth agreed maturrty dates or perrods of notrce - loans

Loans and advances to customers (Note 51 -loans

-levy - frnes - credits

Bonds and other frxed-rncorne securrtres (Note 6).

- rssued by publrc bodres - rssued by other borrowers

Tangrble and rntangrble assets !Note 71

Other assets (Note 81

Prepayments cmd accrued rncome (Note 9)

Total

Total

Total

Total assets

Off-balance-sheet commitments (Note 26)

31 121993

22 027 113 418 119 954 3 550 197 206

4 126 203 226 13 567 192 1 615 162 540 499

1 379 534 947 322 038 071

1 179 187

3 990 344 273

4 141 926 079

1 701 573 018

12 886 095

68 555 368

334 866 210

10 251 330 230

4 571 014 854

31.12 1992

56 203 772

651 975632 3 433388311

4267 090 339

14 719 767 1 615162

1 220874 572

267 724

137

53{) 676

4141567 715

4283 425268

1488 598709

6 523 098

7 696 871

342 872 269

10 271 214 605

4 718395201

L1ab111t1es vrs-a-vrs th1rd part1es

Amounts owed to cred1t 1nSt1tut1ons I Note 1 0) - repayable on demand

- w1th ilgreed r11atur1ty dates or per1ods of not1ce - borrow1ngs

Total

Debts ev1denced hy cert1f1cntes (Note 111

Other 11ab111t1es !Note 12)

Accruals and deferred 1ncome (Note 131

Prov1s1ons for l1ab111t1es and charges (Note 14)

Commitments for the ECSC operat1ng budget !Note 15)

Total liabilities vrs-a-vrs th1rd [Jilrt1es

Net pos1t1on

Prov1s1ons for trnanc1ng the ECSC operating budget

(~Jote 16)

Reserves (Note 171: - Guarantee Fund - spec1al reserve - former pens1on fund

Total

Value adJustment reserve

Surplus brought forward

Surplus for the f1nanc1al year

Net total Total liabilities

Off-balance-sheet commitments (Note 26)

Before allocation of surplus

Liabilities

31 12 1993 31.12.19-92

- 5840 23.1

438 779

-2 745 1-23 6-21

2

985338 811

2 745 562 400 2 991179042

4 585 526 867 4 341 279392

405 814 982

365 986897

270 264 348 28493$ 6{)5

5 296 750

5 805 666

1 361 :211 011 1 283153 2DO

9 373 676 358 9 272 342$02

209 566 925 307 348 557

429 885 000 429885000

166 980 000 1889-80000

58 923 329

57

4699-77

655 788 329 676334977

10 684 405 13 284 511

440 406 2{) 418

1 173 807 1 873 340

877 653 872 998 871803

10 251 330 230 10 271 214 605

7 042 190 739 7 687 872326

European Coal and Steel Community

H. CHRIS

Member

E. CIOFFI